It's been practically a boilerplate warning in my prior articles on Maxwell (NASDAQ:MXWL)
that this energy tech company's stock is likely to be very volatile as
the company tries to cross the bridge between the Chinese hybrid bus and
wind businesses that got it this far and the company's real future in
applications like passenger autos, trucks, and perhaps rail and
grid-scale utility markets.
With that, I'm not
altogether surprised that there was a big downward revision after the
last quarter and that the shares are down about 20% from the time of my last write-up.
Maxwell
has frustrated a lot of investors for quite a while now, but I think
there is one aspect to this story that isn't often discussed. While many
energy tech companies have gone out of business because they couldn't
continue to fund their large R&D needs while commercial partners
tried out their technology, Maxwell has been able to use its China
business to partially subsidize this extended R&D/field trial
process.
Although success for Maxwell is by no means assured, companies like Continental (OTCPK:CTTAY), Valeo (OTCPK:VLEEY), and Volkswagen (OTCPK:VLKAY) are
pushing on with increased electrification of passenger cars and that
does represent at least a potential long-term opportunity for this
electricity storage/delivery specialist.
Read more here:
Maxwell Still Stuck In A Turbulent Transition
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